Sharda Motor Industries (535602) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue was ₹711.3 crore, down 7% YoY; EBITDA rose 6% to ₹105.4 crore and EBITDA margin expanded to 14.8%.

• Won a first U.S. commercial-vehicle emission-module export order; annual business is expected to reach $7 million after ramp-up, with SOP in January 2026.

• Growth priorities include commercial vehicles, farm equipment, overseas OEMs, off-road emission standards and lightweighting products.

Financial highlights

• Q2 FY25 gross profit was ₹188.2 crore, up 8% YoY; gross margin was 26.5% versus 22.8%.

• H1 FY25 revenue was ₹1,396.7 crore, down 1% YoY; EBITDA rose 20% to ₹201.1 crore and PAT rose 15% to ₹155.5 crore.

• Consolidated Q2 PAT was ₹78.71 crore versus ₹80.10 crore YoY; H1 PAT was ₹155.54 crore versus ₹135.32 crore.

• Standalone Q2 operating profit before exceptional items and tax was ₹106.33 crore versus ₹104.81 crore; H1 was ₹208.27 crore versus ₹178.76 crore.

Outlook and guidance

• Management expects to outperform the industry, citing gross profit as the more relevant performance barometer; H1-to-H2 momentum remains difficult to guide amid volatility.

• CEV V standards planned for Jan 2025 and TREM V for Apr 2026 are expected to create off-road opportunities; TREM V products are developed.

• Construction-equipment temperature-controlled tube revenue is expected to begin imminently, with mature volumes more likely from June 2025 and a small initial contribution.

• Suspension plant SOP is expected in mid-December or early January, with marginal Q4 FY25 revenue; capacity is 290,000 control-arm sets.

• Core-emissions capacity additions are expected to require incremental, not substantial, CapEx; lightweighting expansion will need further investment.